England's university funding council has made changes to the plan to divert £100m from people doing second degrees.
The Higher Education Funding Council for England (Hefce) has increased targeted funding for part-time students by 50% to £30m for 2009-10.
It will reconsider exempting disabled students. And there will be an annual review of demand for certain subjects.
The Conservatives and main academics' union have criticised the changes as likely to confuse things further.
A row began after the government decided to divert the money away from those studying for what are termed equivalent or lower qualifications (ELQ), to prioritise people taking their first higher education qualifications.
People complained that the policy would harm those who needed to retrain to improve their skills or switch careers.
Subjects
Now Hefce, at its board meeting on Wednesday, agreed to give further consideration to exempting students in receipt of the Disabled Students Allowance (DSA).
"This will help Hefce promote disability equality in higher education, and ensure that our efforts to widen access for disabled students are not affected by the ELQ policy," it said.
The Board also agreed that students studying in Northern Ireland with the Open University should be exempt.
It added: "Following discussions with the government, we have agreed to annually review levels of demand in exempt and protected subjects, and other subjects which might in future have key economic or social significance.
"This review will consider, among other issues, whether such subjects are adversely affected by the ELQ policy."
In March Hefce will publish an "outcomes report", which will detail the responses to the consultation and the decisions taken by the Board, together with guidance which will clarify the future "fundability" status of students aiming for an ELQ.
The general secretary of the University and College Union, Sally Hunt, said Hefce's response had been totally inadequate.
"We still do not understand why alternative options were not made available, or why there was not wider consultation before the original announcement was made. "We are baffled by the suggestion that all subjects exempted from the funding withdrawal will be reviewed on an annual basis.
"How is anyone supposed to plan courses with the knowledge that all their students could go because some other subject has argued a stronger case for being exempted from funding changes?
"The last thing the sector needs is further confusion and instability, yet this exactly what these proposals will bring."
The shadow secretary for innovation, universities and skills, David Willetts, said: "We are now heading for the worst of all possible worlds.
"The stage is set for a messy and half-hearted list of concessions which tackle some - but not all - of the problems.
"Having such a complicated system will lose the principles that are in force now, while providing little benefit for the future."
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